Correlation Between One Media and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both One Media and Grieg Seafood at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining One Media and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Grieg Seafood, you can compare the effects of market volatilities on One Media and Grieg Seafood and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in One Media with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Grieg Seafood.
Diversification Opportunities for One Media and Grieg Seafood
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between One and Grieg is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and One Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on One Media iP are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of One Media i.e., One Media and Grieg Seafood go up and down completely randomly.
Pair Corralation between One Media and Grieg Seafood
Assuming the 90 days trading horizon One Media iP is expected to generate 1.3 times more return on investment than Grieg Seafood. However, One Media is 1.3 times more volatile than Grieg Seafood. It trades about 0.12 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.11 per unit of risk. If you would invest 400.00 in One Media iP on October 10, 2024 and sell it today you would earn a total of 25.00 from holding One Media iP or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. Grieg Seafood
Performance |
| Timeline |
| One Media iP |
| Grieg Seafood |
One Media and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Grieg Seafood
The main advantage of trading using opposite One Media and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media position performs unexpectedly, Grieg Seafood can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| One Media vs. Gaztransport et Technigaz | One Media vs. GreenX Metals | One Media vs. Sovereign Metals | One Media vs. Allianz Technology Trust |
| Grieg Seafood vs. Kaufman Et Broad | Grieg Seafood vs. Aptitude Software Group | Grieg Seafood vs. Universal Music Group | Grieg Seafood vs. Gaztransport et Technigaz |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |